Depending on the location of the project, a preliminary notice may be called a Notice to Owner (NTO), Notice of Furnishing, pre-lien notice, or something similar. They are sent at the start of a construction project before any payment disputes arise, and usually before any payments are due.

This page provides all the information you need to know about preliminary notices, answers frequently asked questions, and provides free preliminary notice forms. Whether you’re collecting and receiving notices, or you’re sending them, this information will help you understand and master the construction notice document and process.

Benefits of sending & receiving preliminary notice

Getting paid in the construction industry is tough, and so the question for contractors and suppliers is simple: How to break through the mess and get your invoices paid? Notices are step one to getting paid in the construction industry.

Faster payments

Preliminary notices help ensure that the property owner and general contractor are aware of every subcontractor and supplier on the job. If they know that a subcontractor is on the job, there’s a greater chance that sub will get paid. Since notices are helpful and promote better project transparency, they have the effect of prioritizing a contractor or supplier’s invoice above others who have not sent the notice, and thus get companies paid more often and more quickly.

In fact, property owners were largely responsible for the existence of construction notices! In the 60s and 70s, property owners and construction lenders lobbied their governments to help them protect against “surprise liens.” The result of his lobbying was the creation of these pre-lien notices in many states. The purpose was to give owners and lenders the ability to know and track who was on their job, so that they could be proactive to avoid lien claims filed by them.

Types of Preliminary Notices

States use different names for a preliminary notice, though the function of each is very similar. Sending one of these notices will typically help to protect a party’s lien rights if they are not paid, and improve communication among every stakeholder on a project.

However, every state has their own specific notice deadlines and form requirements. Even states that use the same name for preliminary notices vary greatly in their application.

In addition, it’s common for construction parties to use colloquial names for these documents. They may call it a prelien (as in a “pre-lien notice”) or simply a prelim. These terms are simply a nickname for the state’s preliminary notice.

Notice of Furnishing

Notice to Contractor

A Notice to Contractor is used in Georgia, as well as on public projects in Washington.

Other types

Many states refer in their statutes to “preliminary notice.” However, some states have different types of preliminary notice depending on the party’s role, and the type of project. These include:

Notice of Right to Lien (AK, NV, OR, WI)

Preliminary 20-day Notice (AZ, CA)

Notice of Contract (MA, NC)

Monthly Notice (TX)

Notice to Owner Prior to Performance (AL)

Notice of Unpaid Lien (AL)

Notice to Property Owner (AZ)

Disburser Notice (CO)

Notice of Identification (MA)

Notice of Subcontract (NC)

31-Day Notice (NV)

Notice of Unpaid Balance and Right to Lien (NJ)

Notice to Lien Agent (NC, VA)

Notice of Possible Mechanic’s Lien (RI)

Notice of Preconstruction Services (UT)

Model Disclosure Statement (WA)

Subcontractor Identification Notice (WI)

Preliminary Notice of Right to Lien (WY)

All of the different names, forms, and requirements can seem overwhelming! Don’t panic. We make the requirements – and the preliminary notice process – simple. Choose your project’s state from the map or drop-down menu to learn the rules and download free forms.

We make it even simpler by letting you send notices for free through Levelset. Enter a few details about your project and we’ll automatically generate the form you need.

Send a Preliminary Notice for Free

Notice requirements

Sometimes, state law requires parties to send preliminary notices in order to preserve their lien rights. These notice laws are complicated and differ significantly from state-to-state and project-to-project. Contractors and suppliers in these states that fail to follow the requirements could lose their right to file a mechanics lien if they aren’t paid. (See: Can You File A Mechanics Lien Without A Preliminary Notice?)

Delivery methods

Many construction companies already appreciate the benefit of sending and receiving notices. They often have sophisticated policies in place to track deadlines and send or collect notices on every project.

Delivery services

In either case, it’s common for administrators and finance professionals to spend a lot of time doing busy work like researching prelim notice laws, managing notice requirements, and handling the paperwork involved with preparing, mailing, and tracking notices. This is why it’s a good idea to use some type of service (or software) to help better handle notices. Take a look at our review of The 10 Best Nationwide Preliminary Notice Services.

Other notice types

A preliminary notice is typically sent at the beginning of a project, or within a specific amount of time after first providing labor or materials. It’s different from a Notice of Intent (NOI), which some states require after payment is due, but before a party can actually file a mechanics lien.

Watch the Video: Guide to Preliminary Notice

Learn how preliminary notices work, and how you can use them to improve communication and speed up payment on every construction project.

Preliminary Notice Frequently Asked Questions

Here are answers to common questions contractors have about preliminary notices in construction, prepared by construction attorneys and payment experts. Whether you need to send a notice, or are collecting and receiving them, this guide will help you understand these notice documents and how to manage them.

What is the purpose of a preliminary notice?

There are many types of notices sent in the construction process. Most of the time, like as is the case with these preliminary notices, the notices are sent for the purposes of passing information between all the different parties on the job. That is precisely why this "Prelim" device exists.

Can I file a mechanics lien if I didn't send preliminary notice?

If your state law requires you to send a notice and you don't, you'll likely lose the right to file a mechanics lien later on. However, if you aren't required to send a notice (and in many cases, notices are not strictly required), you may still be able to file the lien.

Is a "preliminary notice" the same as a NTO, a pre-lien notice, etc.

This construction notice goes by a lot of different names, but the main function is the same. It might be called a prelim, pre-lien, Notice to Owner, notice to contractor, NTO, etc. Each state has their own deadlines and requirements, though, so don't assume that just because you know one state's rules that they'll apply in a neighboring state.

Is a subcontractor covered by the notice sent by their material supplier?

Do I need to collect a lien waiver from contractors who didn't send preliminary notices?

Collecting and tracking lien waivers is a real pain. Many companies try to simplify the process by just requesting and collecting lien waivers from the contractors, suppliers, and vendors who send preliminary notices. While this could be a good practice, it could also be dangerous.

This could be a good practice when a state has clear preliminary notice requirements. If the state's laws are not crystal clear about preliminary notices, then this is a bad, and dangerous idea.

Keeping track of two things (i.e. did someone send notice? were they required to?) is harder than keeping track of one thing (i.e. did I get a lien waiver from the contractor?). As such, it's probably possible to employ this practice, but it's not a best practice, and is more complicated than meets the eye.

Map of Preliminary Notice Requirements

Is notice required in your state? The below United States map will give you an answer at a quick glance. Explore our preliminary notice resources more fully, which includes thousands of forms, charts, blog articles, and more, by clicking on the state your interested in learning more about below.

Preliminary Notice Service That Helps You

Join the thousands of contractors who are empowered & helped by Levelset

Sending and managing preliminary notices is an important task, but can be tedious and complicated. This is why many companies turn to third-party services and tools to help get the notice process right.

At Levelset, we help thousands of contractors and suppliers across the country with their notice processes (and getting paid faster!). Our notice service combines easy to use web-based software with payment experts on your side. Just take a look at all the positive reviews from contractors across the country. We help thousands of administrators, business owners, and accountants just like you.

Levelset, founded in 2007 by construction attorneys and technologists, is headquartered in New Orleans, LA, and has a team of over 150 that helps thousands of contractors and suppliers every day with the preliminary notice process, project research, and more. The company has been building its technology platform and preliminary notice services now for over 12 years, and is always there for its users, as reflected in the 800+ 5-Star reviews published on reputable, third-party sites.